So what is Web 2.0? The phrase was coined originally by O’Reilly Media and generally refers to the latest generation of websites and web applications that allow increased user participation, rather than the static nature of older websites.

We have all seen, and probably participated in, Web 2.0 websites. YouTube, Flickr, FaceBook. Wikipedia and My Space are all Web 2.0 websites, as is every blog you come across on the internet.

Because of the participative nature of Web 2.0, you can advertise your product or service free of charge simply by word of mouth. Take this example. Write an informative article describing the history, structure, and services offered by your company and submit it to Wikipedia. If it is genuinely informative and of interest, it will be accepted and you will have a page on one of the most popular websites in the world...for free.

However, Web 2.0 advertising runs much deeper than that and the possibilities are limitless. Unlike traditional forms of advertising, it is often consumer driven. If you produce something that people like, references to it will pop up on blogs, forums, and, of course, on other Web 2.0 sites.

This is just one example. Other options to consider are maintaining a presence on social networking sites, starting a blog of your own, or investing in podcasts. If you interact with the Web 2.0 world in a positive fashion, it will interact with you.

Traditional advertising on many of the major Web 2.0 websites is conspicuous in its absence. However, advertising is beginning to creep into the Web 2.0 world in various forms with sites like YouTube offering opportunities for commercial ventures and offering revenue sharing opportunities to contributors.

As Web 2.0 develops, consumers are expecting a richer and more interactive internet experience. With this in mind, you should consider developing your online presence to allow a more interactive and dynamic experience for users.

Offer RSS and news feeds to customers visiting your website. These will help keep your customers informed and help market your products or services.

Increasing the interactivity of your online presence can also help you gain a better understanding of your customers' wants and needs. Giving consumers a voice helps you tailor your products to suit them.

If you haven’t already explored Web 2.0 advertising, now is the time to do so as it offers a growing opportunity for cheap, and most of the time, free advertising.